Context:
The 37th African Union Summit was convened in Addis Ababa, Ethiopia.
37th African Union Summit 2024
- Main topics of discussion: It was the need for the transformation of global financial architecture to address climate & development needs of the African states.
- The dialogue acknowledged the increase in the active participation of African states in global initiatives, such as Kenya’s co-leading the Taskforce on International Taxation.
Agenda 2063: The Africa We Want.
- It is Africa’s blueprint and master plan for transforming Africa into the global powerhouse of the future.
- It is a concrete manifestation of the pan-African drive for unity, self-determination, freedom, progress and collective prosperity pursued under Pan-Africanism and African Renaissance
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- It is an alliance of African Multilateral Financial Institutions that are owned and controlled by African nations solely.
Africa Club:
- Launched in the 37th summit meeting of the African Union 2024.
- Members: It includes the African Export-Import Bank, Trade and Development Bank, Africa Finance Corporation, African Reinsurance Corporation, African Trade and Investment Development Insurance, Shelter Afrique Development Bank and ZEPRE (PTA Reinsurance Co).
- Purpose: To amplify Africa’s influence in the global financial system by aligning its functions with the SDGs and the African Union’s Agenda 2063.
- Objective: It will introduce innovative financial instruments, provide a venue for debt management discussions and foster collaborative efforts to address the specific needs of African countries.
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- Establishing Pan African Monetary Union: A proposal has been put forward to create a central African Monetary Union by establishing three AU financial institutions, i.e., The African Central Bank, the African Monetary Fund the African Investment Bank and a future Pan-African Stock Exchange.
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- Increasing grant and concessional money to Africa: Concessional grants from the IMF and World Bank to African development banks need to be tripled to achieve climate and development goals.
- Multilateral development banks (MDB) reforms: Introduce climate-vulnerability criteria, alongside income level for funding eligibility from MDBs increase the capitalisation of MDBs, especially for middle-income countries facing climate-induced shocks.
- Rechanneling Special Drawing Rights (SDR) by IMF to African financial institutions: there is a need to rechannel IMF SDRs to MDBs to finance climate action and include middle-income countries in the G20 Common Framework for debt restructuring.
- Increasing the African voice and power in global decisions and decision-making bodies
- Committing to an ambitious green growth agenda for Africa
African Union
- It is a continental body consisting of the countries of the African Continent.
- Founded: It was officially launched in 2002 as a successor to the Organisation of African Unity in Durban, South Africa.
- Member states: 55 nations of the African Continent
- Focus: It is to increase cooperation and integration of African states to drive Africa’s growth and economic development.
- Vision: An Integrated, Prosperous and Peaceful Africa, driven by its own citizens and representing a dynamic force in the global arena.
- Principal Organs: The Assembly of Heads of State and Government, the Executive Council, the Permanent Representatives Committee (PRC), the Peace and Security Council and The African Union Commission, Pan-African Parliament and the Economic, Social & Cultural Council (ECOSOCC).
- In News: The African Union is the most recent addition in the G-20 group.
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Also Read: World Government Summit 2024
News Source: DTE
February 28, 2024
